Tesla has signed a massive $16.5 billion agreement with Samsung Electronics to produce its next-generation AI chips, marking one of the largest semiconductor deals in recent history. The chips—known as AI6—will power Tesla’s autonomous driving systems, humanoid robots, and AI data centres.
Production will take place at Samsung’s upcoming fabrication plant in Taylor, Texas, which is expected to begin operations in 2026.
“Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Elon Musk posted on X. “The strategic importance of this is hard to overstate.”
The deal runs through 2033 and signals Tesla’s shift away from Taiwan’s TSMC, which currently manufactures its AI5 chips. Samsung already produces Tesla’s AI4 chips, used in its Full Self-Driving platform.
“Tesla will be deeply involved in every step of the process,” Musk added. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. I will walk the line personally to accelerate the pace of progress.”
Samsung’s Foundry Gets a Lifeline
Samsung’s foundry division has faced steep losses—over ₩5 trillion ($3.6 billion) in the first half of 2025.
The Tesla contract offers a much-needed revenue stream and could help Samsung regain ground against TSMC, which holds 67% of the global foundry market.
Samsung’s shares jumped nearly 7% following the announcement, their highest since September 2024. Analysts say the deal could boost Samsung’s foundry sales by up to 10% annually.
The AI6 chip is designed to unify Tesla’s hardware across vehicles, robots, and data centers. It will support Full Self-Driving (Supervised), Optimus humanoid robots, and high-performance AI training.
Tesla’s decision to manufacture in the U.S. also aligns with broader efforts to localize semiconductor supply chains amid trade tensions and geopolitical risks.
Ripple Effects for Emerging Markets
As global chip capacity expands, emerging tech markets like Africa may benefit from increased access to advanced semiconductors.
Countries such as Kenya and Nigeria are already exploring partnerships to build local chip ecosystems.
The rise of AI-driven automotive and robotics platforms could open doors for African startups in health, transport, and fintech.
With Tesla and Samsung pushing the envelope, smaller economies may find new opportunities to leapfrog into advanced tech sectors.
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